Law:

Section:

Section 20A of the Wealth-tax Act, 1957, read with section 171(9) of the Income-tax Act, 1961 - Hindu undivided family - Assessment after partial partition - Assessment year 1979-80 - Whether effect of amended section 20A(1) would be that any partial partition taking place after 31-12-1978 is to be ignored altogether even though said section was introduced by Finance (No. 2) Act, 1980 with effect from 1-4-1980 - Held, yes - Whether, therefore, it could not be said that amended section 20A would not be applicable to assessment year 1979-80 - Held, yes FACTS The assessee-HUF effected partial partition of the HUF property on 25-1-1979 effective from 1-1-1979. In its return of wealth for the assessment year 1979-80, the assessee excluded the properties partitioned in the said partial partition. However, the WTO ignored the claim of the assessee on the ground that according to section 171(9) of the 1961 Act, the immovable property belonging to the HUF would be assessed as it was in the wealth-tax assessment of the assessee for the assessment year 1978-79. He also referred to the similar amendment made in section 20A of the Act. On appeal, the AAC rejected the appeal. On further appeal, the Tribunal allowed the claim of the assessee holding that partial partition effected on 25-1-1979 should be given recognition as the amendment made by section 20A was applied only for the assessment year 1980-81. On reference: HELD From a conjoint reading of section 20A and section 171(9) of the Income-tax Act, 1961, it is absolutely clear that the partial partition which has taken place after 31-12-1978 has not been recognised in the Income-tax Act or under the Wealth-tax Act and the HUF would be continued to be assessed as such, notwithstanding the claim of partial partition effected by them. Prior to the Income-tax Act, 1961, the Indian Income-tax Act, 1922 did not recognise partial partition. Even under 1961 Act all partial partitions have not been recoginised. Only such partial partitions, which are in accordance with the Explanation to section 171, have been recognised. [Para 6] Inasmuch as section 20A(1) specifically provides that partial partition taking place after…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492